The U.S. Treasury is gearing up to unveil the details of the Public-Private Investment Program on Monday in a bid to provide support to the balance sheets of financial institutions and support the toxic debt market, which includes mostly mortgage-backed securities.
The program will initially be worth $500 billion, but could be expanded to $1.0 trillion, Geithner has said.
He also said the PPIP contains a three-fold approach to the crisis, providing low interest, non-recourse loans from The Fed's Term Asset-Backed Securities Loan Facility and the U.S. Treasury's Toxic Asset Relief Program.
Five different private public funds will bid on toxic assets and sell them to the broader public.
Meanwhile, the Federal Deposit Insurance Corporation will guarantee private sector loans for these purchases, while the U.S. Government invests side-by-side with private equity using taxpayer capital.
Treasury Secretary Geithner recently wrote in an opinion piece in the Wall Street Journal that the taxpayer will benefit from these investments.
The official announcement is slated for 8:45 a.m. EDT.
By Erik Kevin Franco, email@example.com, edited by Stephen Huebl, firstname.lastname@example.org